Penalty Amount
$17,000,000
Consumers Affected
2,124,796
The FTC alleged that Cleo AI misrepresented the amounts and timing of cash advances, charged fees for faster advances that often arrived later, and made subscriptions difficult to cancel. Following a $17 million settlement, the FTC is distributing more than $15.8 million in refunds to eligible customers.
Cleo AI agreed to pay $17 million in the settlement. The FTC is distributing more than $15.8 million to eligible customers who paid for qualifying instant cash advances.
Review customer terms and subscription agreements for clear disclosures of advance amounts, delivery timing, same-day or instant fees, and recurring subscription charges, and ensure cancellation is simple and effective. Check marketing and advertising approval clauses with vendors or affiliates to require substantiation of claims and prohibit misleading representations about available funds or timing. For payment processors and customer-service providers, review fee, complaint-handling, cancellation processing, records, and refund-assistance obligations; this release does not identify a privacy-specific violation, so privacy clauses are not the central issue.
Entity
Cleo AI Ltd.
Industry
Financial Services"Cleo AI"
"Agrees to Pay $17 Million"
"deceptive claims about the amounts and timing of available cash advances and the company’s hard-to-cancel subscriptions."
"2,124,796 Cleo AI customers"
"The Federal Trade Commission is sending more than $15.8 million to consumers"
The FTC alleged that Greenway Auto Group advertised vehicle prices thousands of dollars below the amounts consumers actually paid and used mailers falsely suggesting recipients had won cash prizes. Greenway agreed to an order requiring transparent pricing and prohibiting deceptive prize mailers and other misrepresentations; the press release does not state a monetary penalty.
The FTC sent warning letters to 24 large healthcare services companies, cautioning that incomplete, inaccurate, or untimely pricing information for scheduled medical care may be unfair or deceptive. The letters urge recipients to review their price-disclosure practices and take corrective action; they announce no fine or formal order.
$1.9M
The FTC alleged that Premier Franchising Group LLC and Franchise Fastlane LLC made deceptive and unsubstantiated claims about the Premier Martial Arts franchise opportunity and violated the Franchise Rule. The proposed settlements require the companies to pay a combined $1.85 million to compensate franchisees, prohibit certain misrepresentations, and require Franchise Rule compliance; certain franchisees may also cancel their agreements without penalty.
The FTC, Utah, and Nevada sued Lens.com Inc., alleging that it advertised artificially low contact lens prices while hiding mandatory checkout charges and misleading consumers about its AutoRefill subscription. The complaint seeks to stop the alleged practices; the court has not yet decided the case, and no penalty or remedy has been imposed.
The FTC issued an advance notice of proposed rulemaking seeking public comment on whether ad-optimization tools offered by online platforms may help scammers impersonate businesses and government agencies. This is a proposed regulatory inquiry, not an enforcement action against a named company; no penalty or remedy was imposed.
$2.5B
A federal court approved a revised order in the FTC's Amazon Prime case under which Amazon will accelerate and expand redress payments under the September 2025 $2.5 billion settlement, which resolved allegations that Amazon enrolled millions of consumers in Prime subscriptions without their consent and knowingly made cancellation difficult. More consumers now qualify for refunds, the maximum payment cap rises from $51 to $200, and all future payments will be distributed automatically starting October 1, 2026, with potential supplemental $149 payments by April 2027. Amazon has already issued more than $845 million in redress payments as of September 2026.